Active Directory Basics
Step 1 of 119%

Step 1 — Create the Windows Server VM in Azure

In this step, you will create a low-cost Windows Server virtual machine in Azure. Most settings can be left at their defaults — only the critical ones are called out explicitly.

What this may cost

Rough estimate: $2-$8 if you complete the lab quickly; roughly $25-$40/month per B2s Windows Server VM if left running. Actual Azure pricing varies by region, VM size, subscription, credits, and how long you leave the lab running.

  • A Windows Server domain controller VM in this step
  • A second Windows Server client VM later in the lab
  • Managed disks, public IPs, network interfaces, and a virtual network

Stop/deallocate lab VMs whenever you pause. Delete the resource group when you are done.

How to stop billing

  1. In the Azure Portal, stop each VM and confirm the status is Stopped (deallocated).
  2. When you are finished with the lab, delete the entire ad-lab-rg resource group.
  3. Verify the resource group, VMs, disks, public IPs, and network interfaces are gone.

Deallocating stops VM compute charges. Deleting the resource group is the cleanest way to remove disks, public IPs, and other billable resources.

1. Create the Virtual Machine

  1. Log into the Azure Portal
  2. Navigate to Virtual Machines
  3. Select Create → Azure virtual machine

2. Basics Tab (Important)

  • Subscription: Leave default
  • Resource Group: Create a new one (e.g. ad-lab-rg)
  • Virtual Machine Name: DC01
  • Region: Closest region to you
  • Availability Options: Leave default
  • Image: Windows Server 2022 Datacenter
  • Size: B2s or similar

3. Administrator Account

  • Username: Any name
  • Password: Strong password — save this

This local administrator account will later become your first domain administrator.

4. Inbound Port Rules

  • Public inbound ports: Allow selected ports
  • Inbound ports: RDP (3389)

5. Disks Tab

  • OS disk type: Standard SSD
  • Leave all other settings at their defaults

6. Networking Tab (Do Not Skip)

  • Virtual network: Create new
  • Subnet: Default
  • Public IP: Create new
  • NIC network security group: Basic
  • Inbound ports: RDP (3389)
Why this matters

Your Domain Controller and future client VM must be on the same virtual network. Fixing this later causes DNS and authentication issues.

7. Management, Monitoring, Advanced, Tags

  • Leave all settings at their defaults

8. Review + Create

  • Review your settings
  • Select Create
  • Wait for deployment to complete

9. Set a Static Private IP (Recommended)

  1. Open the VM → Networking
  2. Select the Network Interface (NIC)
  3. Go to IP configurations
  4. Change Private IP assignment from Dynamic to Static
  5. Save your changes

This prevents IP changes that can break DNS and Active Directory later.

Checkpoint

  • VM deployed successfully
  • You can RDP into DC01
  • Windows Server desktop loads
  • Private IP is set to Static

If any of these fail, stop and fix the issue before moving on.